Singapore-listed shipbuilder Vard Holdings has issued a profit warning on its financial results for the third quarter that ended in September and full year ending on 31 December.
The Norway-headquartered company is due to announce its third quarter result on 11 November 2015 before market opens, according to the company’s filing to the Singapore Stock Exchange (SGX).
Financial performance for the upcoming quarter is slated to be burdened by Vard’s yard problems in Brazil amid the challenging market.
The company’s yard performance in Brazil has been lacklustre and experienced a manpower crunch as well as high staff attrition.
“With reference to the disclosures given during the first and second quarter in 2015 regarding the operational challenges at the Brazilian shipyards of the group, combined with the negative trend in the Brazilian economic and political environment, the results for the third quarter that ended on 30 September 2015 and the full year ending 31 December 2015 will be materially negatively affected,” stated Vard in the filing to SGX.
The board of Vard wishes to advise its shareholders and investors to exercise caution when dealing in the shares of the company.
Vard posted a NOK51 million (USD6.2 million) loss for the second quarter of 2015. The loss was attributed to the severance payments as VARD restructured its business, as well as a shortfall in new orders and lower deliveries.